Making Your Board a Strategic Asset

Board Evaluation Limited welcomes the new FRC Board Effectiveness Guidelines, they are a useful summary of what is in the Corporate Governance Code and an appropriate codification of some of the key issues. The descriptions of the roles of Board members and the importance of getting the balance right is crucial but also the FRC’s comment that there is no right way is excellent advice, this should be all about stimulating the Board thinking process. We like their guidance that Boards need to think deeply about the way they carry out their role and that challenge is essential, the Board should not be a comfortable place. The FRC also, quite rightly, makes the point that continual monitoring and evaluation is required, a one-off performance assessment has its value but it is not enough; evaluations should be ongoing, bespoke, rigorous and objective!! The FRC also identifies the benefits of external assessments both as part of the ongoing corporate governance mechanism, but also to deal with events such as board composition changes, major operational problems or to deal with external misconceptions. This is all very good advice; we support the Guidelines and we confirm that any assignments we work on are governed by the principles they establish.